MEMORANDUM

To:         Financial Aid Directors

From:    Chuck Sanders, President and CEO

Date:     April 5, 2010

Re:        Deadlines for Federal Loan Origination and Disbursement

On behalf of our dedicated staff at South Carolina Student Loan, I would like to thank you for your loyalty and for allowing us to partner with you for the past 37 years in providing financial assistance and service to your students and parents through the Federal Family Education Loan Program (FFELP). Today, I am writing you regarding important dates for the origination and disbursement of our loans through FFELP.

As you know, the recent Health Care and Education Reconciliation Act of 2010, passed by Congress and signed by the president, requires that all federal loans beginning July 1, 2010 be originated through one lender, the nationalized William D. Ford Federal Direct Loan program, rather than giving students and parents a choice of a lender. We realize the burden this legislation causes for funding the summer session, so we are doing everything in our power to make federal loans available from us for as long as possible. In order to accommodate the financial needs of students and parents for the summer session, we have established June 17, 2010 as the final date for borrowers to initiate an application for Federal Stafford, PLUS and Graduate PLUS Loans through our office. We must ensure that we allow adequate time for us to finance these loans, therefore, our final date for disbursement of federal loan funds will be June 24, 2010.

While it is truly unfortunate and disappointing that we must discontinue originating federal student loans, please be assured that SC Student Loan remains committed to fulfilling our nonprofit mission of providing college access for students and families in South Carolina who rely on education loans for pursuing higher education.

Thank you again for your continuous support of our organization. We look forward to continue serving you, your students and parents with our Palmetto Assistance Loan (PAL) and SC Teachers Loan programs. If you have any questions, please do not hesitate to contact one of our loan counselors at (800) 488-9875.